The Willingness to Buy

Consider the example of Wacky Willy Stuffed Amigos, a cute and cuddly line of stuffed creatures. Buyers decide how many Stuffed Amigos to buy, at a given price, based on the satisfaction generated. These creatures are extremely cute and cuddly. Some say that they are even adorable. They make people happy. But tastes can change.

• Like It More: Suppose that a noted guardian of public taste--like television icon, Brace Brickhead; financial impresario, Winston Smythe Kennsington III; or baseball legend, Harold "Hair Doo" Dueterman--proclaims an undying affection for Wacky Willy Stuffed Amigos. If this guardian is, in fact, influential over public tastes, then more people will likely decide that they too must have Wacky Willy Stuffed Amigos. The demand, as such, increases.


• Like It Less: Alternatively, suppose that these guardians of public opinion proclaim that Wacky Willy Stuffed Amigos cause cancer, lead to mental illness, or are part of a master plan by a foreign leader to rule the world. If so, then people might tend to reduce their preferences for Wacky Willy Stuffed Amigos. The demand in this case decreases.

Shifting the Demand Curve

Buyers' Preferences

Now, consider how changes in buyers' preferences shift the demand curve. Buyers' preferences are relatively straightforward. If buyers like a good more, they buy more. If they like a good less, they buy less.

• Increased Preferences: An increase in buyers' preferences cause an increase in demand and a rightward shift of the demand curve. Click the [Like It More] button to demonstrate.


• Decreased Preferences: A decrease in buyers' preferences cause a decrease in demand and a leftward shift of the demand curve. Click the [Like It Less] button to demonstrate.

The Power of Preferences

The "commercial" media offers a glimpse of this power. Advertising, through television and radio commercials, newspaper and magazine advertisements, highway billboards, internet banner ads, and corporate sponsorship of sporting events, is largely designed to influence buyers' preferences. Not only is advertising a multi-billion-dollar industry unto itself, but commercial advertising also supports the broadcast television and radio industries; it is a major source of revenue for newspaper and magazine publishing; and it provides ample funding for professional sports. All of the folks working in these industries can attribute the bulk of their incomes, directly or indirectly, to the task of influencing buyers' preferences.